Offshore Company Incorporation

Offshore Company Incorporation Services

Navigating the complex bureaucratic and legal requirements commonly associated with onshore companies can be a time-consuming stumbling block for businesses. OSPL currently provides the establishment of offshore company incorporation in three countries for corporate clients: Panama, Cook Islands and British Virgin Islands.

An offshore company is a company incorporated for the purpose of operating outside the country of its registration and/or place of residence of its shareholders, in the pursuit of realizing financial, legal or even tax benefits as well as greater flexibility for the firm. The jurisdictions in Panama, Cook Islands and British Virgin Islands offer a supportive business environment and fully legal tax benefits.

Bearing in mind our clients' unique needs, our team is able to assist corporate clients in selecting the most viable jurisdictions in a flexible, and time and cost-efficient manner.

Why set up an offshore incorporation?

Internationalize a company and its assets
Legally create an efficient structure for tax and investment purposes
Provide a layer of privacy and confidentiality to the business
Reduce the complications that may arise from bureaucratic requirements or legal obstacles of an onshore company.

Offshore incorporation may be applied in the following scenarios:

Investment and holding firms set up in offshore jurisdictions might invest in investment instruments (equities, fixed income, etc) internationally without having capital gains, dividends or other income subjected to taxation. At the same time, it also provides an added layer of confidentiality for investors. However, it is advisable for the shareholder to check with legal tax advisors on their respective country of residence's domestic tax laws.

Offshore company incorporation could also be a good recommendation for exporting or importing firms, in instances where the firm conducts trade between two countries outside of its base country. Establishing itself as an offshore company might help the firm legally defer taxation or increase its bottom line in a lower tax or tax-free jurisdiction.

Finance companies can also benefit from incorporating as an offshore company in a low-tax or even tax-free business environment, as it can fund the operation of subsidiaries in multiple countries while enjoying lower taxes on interests paid. This can significantly free up capital for the firm, thus allowing it to invest in other business areas.

Captive insurance companies, which is an insurance company wholly owned and controlled by its insureds, are created by larger companies to insure and re-insure the risks of subsidiaries and affiliated companies. There are several offshore countries that encourage the establishment of insurance companies, with favourable taxation.

Companies providing professional services, such as designing, consulting, writing or entertainment, can choose to receive fees by assigning an offshore company the right to receive those funds. Incorporating an offshore company in a tax-free or low-tax jurisdiction might then help save on tax expenses.

Patent, copyright and royalty companies are yet another example of firms that may benefit from offshore company incorporation. For example, an offshore firm can purchase the right to use a copyright, patent or trademark by its original holders with the authority to sub-license. Sub-license is a contract granted to a third party by a licensee for specified rights or uses. The offshore company can subsequently enter into agreements with licensees around the world, who could then circumvent the intellectual property right and use it in various countries while paying royalties in a lower tax jurisdiction.

Disclaimer: It is advisable for corporate clients to do their due diligence, and seek professional tax and legal advice to ensure compliance with applicable onshore laws before establishing an offshore company incorporation. OSPL does not bear the consequence of any liability or loss incurred from the direct or indirect application of the information above.